Get answers to frequently asked questions

Yes, you can make withdrawals from your account at any time. Consider whether a withdrawal from MyCTSavings is really your best option. You may want to consult with a tax expert.

The only withdrawal restrictions for MyCTSavings IRAs are those set by the federal government for any Roth or Traditional IRA. Please consult a tax expert or financial advisor about your circumstances.

Money in your Roth IRA can be transferred or rolled into another Roth IRA only. You should consult with a tax expert or financial advisor first.

You can take money out of your Roth IRA at any time. There is no fee or penalty for withdrawing the contributions you make. However, investment earnings are subject to taxation and an additional penalty if taken out before you reach age 59½. There are penalties if you withdraw funds before you’ve had your first Roth IRA for five years. There are exceptions though. For example, if you’re a first-time homebuyer and your Roth IRA withdrawal may be tax-free if you have met the five-year requirement. Taking early withdrawals from Traditional IRAs may also be subject to income tax and penalty. That said, if you’re unsure about your status, it’s best to consult with a tax expert or financial advisor.

There is no administrative fee or penalty for withdrawing the money you put into your Roth IRA. That’s your money and you already paid taxes on it. The interest your money has earned is taxable and possibly subject to a 10% penalty if withdrawn before you are age 59½. For a Traditional IRA, withdrawals may also be subject to income tax and early withdrawal penalty. Please consult with a tax expert or financial advisor to determine what steps and restrictions may apply to you.

There is no minimum retirement age associated with the program. There is a federal tax penalty for withdrawing any investment earnings from a Roth IRA before age 59½, unless it’s for a qualifying reason. Please consult with a tax expert or financial advisor.

You can take your money out of your Roth IRA at any time.

If you are a resident in the state, Connecticut income tax withholding applies only to the taxable portion of IRA distributions. Therefore, if your withdrawal is a qualified distribution there will be no income tax withheld.  If your withdrawal is not a qualified distribution, then a minimum of 6.99% of the taxable portion (the earnings) will be withheld in the state of Connecticut, but you may claim an exemption from withholding, if eligible, or you may elect to have an additional amount withheld, by completing and submitting a Form CT-W4P.

Please allow up to 3-5 business days. Distributions will generally be processed within 3 business days of your request. During periods of market volatility and at year-end, distribution requests may take up to 5 business days. For security purposes, there will be a hold of 15 calendar days when there is a change to your address, and a hold of 15 calendar days following a change to your banking information. Distributions of contributions made by check or ACH will not be available for withdrawal for 5 business days.

If you die and have no named beneficiaries, the account will be payable to your estate under the terms of the IRA. Accounts that become unclaimed property will be subject to applicable law.